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Hormel Sells Whole-Bird Turkey Unit To Chase Steadier Growth

Hormel Sells Whole-Bird Turkey Unit To Chase Steadier Growth

FinvizFinviz2026/02/18 10:57
By:Finviz

Hormel Foods Corp. (NYSE:HRL) agreed to sell its whole-bird turkey business as it reported preliminary fiscal first-quarter 2026 results on Tuesday, outlining a portfolio shift toward value-added protein products.

  • HRL is showing weakness near its 52-week low.

The company announced its preliminary fiscal first-quarter results for 2026, projecting net sales of around $3 billion with a 2% organic net sales growth.

This announcement accompanies the company’s decision to sell its whole-bird turkey business to Life-Science Innovations (LSI), in line with Hormel’s focus on expanding value-added protein offerings.

Hormel’s Strategic Shift

Hormel’s divestment from its whole-bird turkey business is part of a broader strategy to strengthen its portfolio by emphasizing more stable, value-added products.

LSI is set to purchase Hormel Foods’ production and transportation assets in Minnesota, which include the Melrose whole-bird facility and the Swanville feed mill. The company will take over supply agreements with independent turkey growers and maintain co-manufacturing operations with Hormel until the end of fiscal 2026 to facilitate a seamless transition.

“This transaction is an important next step in our evolution. With a more focused turkey portfolio, we will continue strengthening the value-added aspects of our JENNIE-O business. We look forward to working with LSI to ensure a smooth transition for our team members, customers, consumers, and suppliers,” stated John Ghingo, president, Hormel Foods.

The sale to Life-Science Innovations, expected to close by the end of Hormel’s second fiscal quarter, includes key assets, including production facilities and supply contracts. The JENNIE-O brand remains central to Hormel’s growth strategy and continues to be a significant revenue source.

Key Financial Metrics

Hormel projects diluted earnings per share of 33 cents for the first quarter, with adjusted earnings of 34 cents, slightly above the analyst estimate of 32 cents.

The company expects net sales of approximately $3 billion, reflecting 2% organic growth, compared to the $3.07 billion estimate.

Jeff Ettinger, interim chief executive officer, commented, “They reflect a solid start to the year, are aligned with our expectations and give us confidence that we are focused on the right initiatives to return Hormel Foods to profitable growth.”

The transaction with Life-Science Innovations continues Hormel’s efforts to refine its business model. By focusing on value-added products, Hormel aims to reduce risks from volatile commodity-driven segments and support sustained profitability.

Interim CEO Jeff Ettinger expressed confidence in Hormel’s strategy, stating that the first-quarter results met expectations and supported the company’s commitment to profitable growth. Hormel expects minimal impact on its adjusted fiscal 2026 financial results from the turkey business sale and remains focused on its long-term growth plan.

At the Consumer Analyst Group of New York conference, Hormel will reaffirm its fiscal 2026 guidance, targeting 2-3% organic net sales growth and 5-7% operating profit growth, supported by streamlined product offerings.

HRL Price Action: Hormel Foods shares were up 0.81% at $23.63 during premarket trading on Wednesday.

Photo by Viewimage via Shutterstock

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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